5 months ago I applied for my first card ever at 21 years old, Discover Student IT Card. Roughly two weeks ago, I was approved for the Citi 2% cash back card.
The reason I opened the second card was due to the fact that in the last 3 months or so, I have been constantly approaching or hitting 30% utilization (one of those 3 months I actually surpassed 30%).
From what I have learned so far, credit utilization is an important factor in determining your credit score and you typically do not want to go above 30% on any of your cards.
I have gone from a 640 credit score to 730 since in these last 5 months, and I would like my score to keep rising.
My current strategy:
I plan on using my Discover IT card for the 5% cash back on special promotions that change every few months, and the 1.5% cash back -- until I hit close to 30% of my utilization.
Once I hit 30% utilization, or near 30%, on the Discover card -- I will then start using my Citi card until the next payment cycle begins for my Discover Card. Then I will rinse and repeat.
BTW: the limit on my Discover card is $2,000 and the limit on the Citi card is $4,700.
Is what I'm doing a smart/good strategy? or am I complicating this shit for myself for no reason?
Thanks in advance for the feedback :)
Submitted July 23, 2020 at 10:09PM by leapgoose https://ift.tt/3fVSMsH
